Thomas Cook Extends Hotel Fund

Thomas Cook’s hotel fund joint venture with LMEY Investments, Thomas Cook Hotel Investments (TCHI), has secured its second round of debt funding with €51 million from CaixaBank of Spain.

The funding takes the total amount raised in the last three months by TCHI to €91m, following the initial tranche of €40 million from Piraeus Bank. The funds will be used to invest in opportunities in Spain and around the Mediterranean. TCHI has also agreed to acquire a 250-room hotel in the Canary Islands, as well as another 300-room hotel in the Balearics.

The seven hotels in the fund now take the total asset value to around €250 million and 2,200 rooms. The fund aims to comprise 10-15 hotels within the next two years. The hotel fund aims to acquire underperforming, distressed and underinvested hotels in Thomas Cook’s core destinations and transform them into own-brand hotels.